Introducing Duet Protocol

Background

The Duet Protocol

Duet protocol (Duet) is a multi-chain synthetic asset protocol that enables on/off-ramp between traditional real assets and high-growth crypto assets.

Main Components

1) Stablecoin & dAsset Minting Contract

  1. Deposit 1 ETH worth $1,500 (or any supported asset) and $150 worth DUET, lock it into a smart contract (Collateralized Debt Position, CDP) as collateral.
  2. According to collateral parameters (LTV of 1/3), a Tesla stock token dTSLA worth $550 can be generated (~0.85 shares at the current price of 650 USD per share).
  3. To reclaim collateral, repay 0.85 shares of dTSLA and get back the locked 1 ETH and the same amount of DUET token as when you deposited it.

2) Interest Yield Module

3) Collateral liquidation agreement

4) AMMs

5) Staking and governance voting pool

The Duet Token

Duet Token (DUET), the governance token of Duet, undertakes the following functions:

  • Used as collateral to mint “Neutral Assets” (stablecoins) and “Sharp Assets” (traditional financial assets)
  • Boost capital utilization while enhancing system robustness following our unique algorithm.
  • Provide liquidity mining rewards for dAssets in swaps or lending.
  • Voting governance, powered by Snapshot, covers new assets and system parameters.
  • Fee payments in the minting ecosystem.

Rewards for holding DUET

  • Asset reverse minting fee(returning collateral from dAssets)
  • Yield Sharing from re-staking of user’s collateral
  • Staking and participation in governance incentives
  • Handling fees incurred in financial activities such as Swap and lending
  • Part of the return on the spread of asset liquidation

DUET Distribution

Duet Stablecoin

Stability of dAssets

1. Funding Rate Fees

2. Arbitrage

  • When dAsset price is too high, buy the physical market, mint dAsset in the Duet and sell it, and wait for the price difference to converge, sell it in the spot market, and buy dAsset in the on-chain market to redeem the collateral to make a profit.
  • When the price of dAsset is low

Oracle

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Duet is world’s first multi-chain synthetic assets ecosystem, enabling pegged assets from various markets including stocks, indexes, ETFs, and commodities #web3

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Duet Protocol

Duet is world’s first multi-chain synthetic assets ecosystem, enabling pegged assets from various markets including stocks, indexes, ETFs, and commodities #web3